target company


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Target company

Often used in risk arbitrage. Firm chosen as an attractive takeover candidate by a potential acquirer. The acquirer may buy up to 5% of the target's stock without public disclosure, but it must report all transactions and supply other information to the SEC, the exchange the target company is listed on, and the target company itself once the 5% threshold is hit. See: Raider.

Takeover Target

A publicly-traded company that is the object of a takeover, especially, but not necessarily, a hostile takeover. That is, another company is interested in buying the takeover target, often by buying its shares with the intent of obtaining a majority stake without the authorization of its board of directors. An acquiring company identifies takeover targets based on a variety of factors, including share price and growth potential; it may buy up to 5% of the takeover target without publicly disclosing its intentions. A takeover target is also called a target company.

target company

A firm that is the object of a specific action unwanted by its management, such as a takeover attempt or an antitrust suit. Also called takeover target. Compare raider. See also in play, takeover, toehold purchase.
References in periodicals archive ?
18%) of the Target Company's Shares that are listed on the First Section of the Tokyo Stock Exchange, and the Target Company is a consolidated subsidiary of the Tender Offeror.
Determine if the target company uses a trademark watch service.
For example, if the target company is being purchased on a cash-free, debt-free basis, using the GAAP definition of working capital will lead to double-counting cash and certain liabilities.
Questions often abound about future liabilities that may arise from products that the target company currently sells, or from products that were discontinued years before but still carry potential liabilities.
To comply with the local ownership restrictions, a foreign investor is often required to have a local sponsor for the target company and, in case of a branch office, appoint a local registered agent.
Legacy Liability Insurance: Legacy liability insurance is a broad risk transfer solution addressing successor liability for claims arising from prior acts by the target company.
In addition, the acquirer will require its proposals to be recommended by the independent directors of the target company - namely, those directors who are not part of the management buyout team.
Staying ahead of these changes by quickly reinforcing its corporate structure and further expanding its business scope, the Target Company plans to pursue sustained growth through sales expansion and strengthening of its production system and efficiency.
Target company management will be more confident in a buyer's ability to manage and grow the business post-closing if the buyer demonstrates a thoughtful and detailed understanding of the business.
Although ideally a Potential Purchaser would like to conduct a proper due diligence review of the Target Company irrespective of whether the transaction is a friendly M&A transaction or a hostile M&A transaction, the reality is that in a hostile M&A transaction the Target Company will almost certainly be unwilling to provide the information required for such a review.
Employees ( with a share sale, employees of the target company will continue to be employed by it.
Here, the acquiring company creates a transitory subsidiary that is "merged with and into" the target company, with the target company surviving after the merger close.